Subsidy blackmail

PRESIDENT Goodluck Jonathan, through a memo read to both Houses of the National Assembly is requesting for N161.6 billion naira ($1 billion) supplementary budget to defray fuel subsidy debts purportedly owed petroleum products importers for year ending 2012.

This extra-budgetary request takes total spending on fuel subsidy this year to over 1 trillion naira, about a fifth of the total federal budget.

The 2012 budget reportedly set aside N888.1 billion for fuel subsidy, which the government claimed it had nearly exhausted, using that as basis for the latest demand for extra N161.6 billion. President Jonathan puts it thus: “Given the need to maintain a steady flow of petroleum products, especially in the run up to the festive season, it is my hope that the distinguished senators will kindly accord this request their … approval.”

From the foregoing, the government could justifiably be accused of using subtle blackmail on the National Assembly. The request, if indeed genuine, ought to have been made before now because the subsidy payments balance sheet is in government’s custody. Therefore, it would be pertinent for it to tell the nation at what point it occurred to it that the approved sum would not be sufficient.

Secondly, the fact that this administration waited till this festive period before making this claim, knowing full well the importance of December, shows that it was playing games with the subsidy ruse. For no tangible reason, fuel scarcity/shortages have been a recurring decimal since January. Yet, Nigeria is Africa’s top oil producer, with mostly moribund refineries, thus forcing it to importabout 80 percent of its refined fuel needs.

There is too much puzzle in the subsidy schedule since it has turned out to be a conduit for uninhibited state theft. As at 2009, fuel subsidy was put at about N600billion and we doubt if any economic sense could be made of the trillions of naira astronomical increment of the subsidy in 2011, an election year, and this year?

No doubt, there is more to it than meets the eye in all these subsidy transactions. Could it be a ploy by government to deceive Nigerians into believing that there was little or no fraud in the subsidy payments in the past? But the government would also have to tell us what economic activities made Nigerians consume so much fuel last year, making us pay far more than what was spent on subsidy in three years (2006-2008) in 2011 alone. With the numerous indicting reports of several committees against the government and some fuel importers, it seems this administration is now at a crossroads.

Yet, the only thing that can end the fraud is not for the government to cover it or coerce Nigerians to pay for its ineptitude and corruption; but to build more refineries and then hand over to private investors to operate. We wonder why the government is shying away from this. Is it to sustain the subsidy fraud, or what?

We are unhappy that the Senate has so hastily fallen for the blackmail that fuel would be scarce during the festive season if the additional N161.6billion was not approved and had thus given its nod to the proposal. The House of Representatives should not toe this line; rather, it should look critically into the matter and throw it out, if necessary.

We call on the civil society groups and the citizenry to stay alert and mount pressure on the government to build more refineries. It was the heat put on President Jonathan in January when he removed fuel subsidy that brought the negligible reprieve that is now being enjoyed. The proposed N161.6billionn supplementary budget request is a pointer that the entire fuel subsidy is a huge racket.

Statistically it can be proven that nigeria requires up to what it is now. Petrol demand is a kind of growing demand.it grows with the supply. Because of the subsidy cum inconsistent power supply almost halve of the population uses PMS per day. Now Allocate 2 litter per person per day for the nation definitely you know what volume it is. So it is not just to critisize govt you must think thru to know the realities of things. This is not to rule out corruption in the oil sector and the subsidy graber. Let us allow subsidy to go simple. This is the only utimate technical solution to the menace. This issue has been from govt to govt when are we going to end it.

Goldenson

The Nigeria Senate should hasting the approval of the letter of Mr. president in other to avoid fuel scarcity during this festive season as requested by Mr. president.
More refineries should be built to enhance sufficient supply of petroleum products.

luckychap

I realy don’t know what mr. President has to do for your kind to make you see his good intensions for the country. You are complainig about mr. presidents request for more money to settle fuel subsidy that you came out in jenuary to protest against its removal. Mr. President is trying to make life easy for you and i, you are looking for a way to frustrate his efforts. Pls. Write aticles that shows how patriotic you are to your country and don’t try to tell the person on the seat that he does not know how to do things because you feel you know how to do it better. Take a look at the presidential debate of Obama & Romney. STOP confusing the public.

olu

has there not been fuel scarcity for over 3 months now? Ve been buying fuel @ N120 instead of d N97 bench mark! Reps must nt approve d money. Let goodluck do his worse, nigerians will survive. Nigerians outlived ibb and abacha, likewise shall we dis wicked govt. All of them will neva live to enjoy their loots. Their generations to come will suffer despite their loots